In recent months, the restaurant industry has seen a 40% decrease in consumer spending, according to Thanivarn Kulmongkol, president of the Thai Restaurant Association.
This, coupled with the fact that tourism numbers are also on the downturn, means a wide range of establishments from fine-dining restaurants to food stalls and even street food have been doing their best to stay competitive. With consumers focusing largely on price, it is fine dining and casual fine dining that are suffering the most.
Clara restaurant’s summer dishes.
Acqua Bangkok.
"Yes, in many parts of the world, including Asia, demand for fine dining is showing signs of slowing down. In the case of Thailand, upper-middle-class consumers are tightening their entertainment budget and this includes eating out. Even tourism has shifted to more budget-conscious options, and the younger generation, though still spending, are prioritising more casual concepts," says Christian Martena, chef-patron of Clara, an Italian fine-dining restaurant.
The 2025 outlook for the Thai restaurant industry, which is valued at 700 billion baht, points to a slowdown. According to a report by the Department of Internal Trade, some 3,000 restaurants closed during the first quarter of this year alone. At the same time, a significant number of new establishments opened, though this has only spread the diners and not added more to the table.
In February, Bangkok bid farewell to its first big fine-dining casualty -- Canvas Bangkok, under the tutelage of chef Riley Sanders.
Alessandro Frau, chef and owner of Acqua in Bangkok.
"I don't think that the demand for fine dining is slowing down. I think the demand has been relatively stable outside of the disruptive period during Covid. The fine-dining scene has experienced rapid growth, but there have clearly been some growing pains. We've seen an influx of internationally acclaimed chefs making waves in Thailand with several more openings coming soon. We've also seen a notable number of local chefs making an impact and pushing Thai cuisine ahead," says chef Sanders. This train of thought may hold true, as at the recent World's 50 Best 2025 awards Thailand had six restaurants on the list, outdoing established fine-dining cities like Singapore and Hong Kong. This year, Thailand has done tremendously well on the world and Asian stage by being home to Asia's No.1 restaurant, Asia's best female chef, Asia's best pastry chef and the world's best female chef.
However, all the accolades aren't enough to ensure diners fill the restaurants, especially high-end ones, when even street food is showing a decline. Recent news reports have claimed that the popular Banthat Thong Road is suffering significantly from a decline in Chinese tourists and cautious domestic spending.
"I think local diners are a bit spoiled for choice, considering all the new openings in the dining scene. It's simple, the number of guests is going to be the same, but now they're spread out among a broader spectrum of restaurants, rather than concentrated into a smaller number," adds chef Sanders.
Dishes by Jhol.
"The past three years has seen a preference for casual fine dining in a relaxed ambience, with comfort food that is not complex and friendly, engaging staff. Of course, pricing is most important. With most high-end restaurants offering only the choice of a single degustation menu, it limits the number of visits each year. Most diners will come only two or three times a year and mostly on special occasions. That begs the question, is this a good business model?" says Alessandro Frau, chef-patron of Acqua restaurants.
Acqua, a popular Italian restaurant in Phuket, opened its Bangkok branch after Covid.
"As a restaurant owner, I want customers to visit me regularly, at least three or four times a month, which is why we have an extensive a la carte menu," says chef Frau.
"Though we see a slowdown in fine dining, other segments are affected as well. The current global economic situation is affecting consumer spending and the earthquake, reduction in tourist footprint, changes in consumer behaviour and demand and supply, are also contributing factors," says chef Sachin Poojary of Michelin-starred Inddee, an Indian fine-dining restaurant.
Maison Dunand’s chef-patron Arnaud Dunand.
Of similar sentiment is chef Pongcharn "Top" Russell of Mia. "It really depends on how you measure a slowdown. I think the mid-range of high-end casual dining [with almost the same price point] has grown significantly. If you combine that with fine dining, then it's pretty much the same -- there's a pocket of high-end spenders that have become more diversified. Traditional high-end cuisines in Asia, especially Japanese and Chinese fine dining, are still going strong. This shows that people are willing to take less 'risk' and go for exactly what's promised," he says.
"Bangkok's fine-dining scene has peaked. There are simply too many options. The current sluggish economy has definitely influenced consumer behaviour. With reduced spending, people tend to prefer casual dining instead of long, immersive experiences. With that, restaurants with accolades continue to stay busy. Nevertheless, it's becoming increasingly difficult for many fine-dining venues to survive in the current climate," says fine-dining enthusiast Chanon "Chain" Sethiwan.
With all these factors to consider, Bangkok's fine-dining scene is looking at itself for a major revamp. As another diner, Thaneadpol "Bank" Burapaskul, points out: "There have been a lot of new fine-dining openings in the past years, but even more in number are those new casual but high-quality restaurants where the experience can be as exciting at a 30%-50% lower price point. In addition, there are a lot more chef's table-style establishments that have opened in the past two years and many of them are doing great. Even with small covers per establishment, they add up to be quite substantial.
"Everyone wants to try new things and this leaves a majority of the old establishments empty, especially without tourists to fill the seats. However, crowd favourites are still doing great -- look at Sorn, Cote or Sushi Masato, for instance."
Chef Sachin Poojary of Inddee.
With the general consensus being that value for money is important, there are chefs who think this is just the natural evolution of an industry.
"Everything comes in waves and perhaps now, it's time for something else. You can only go out and have so many tasting menus a month/year. Certain places will always stand out, but for a large majority, in an environment with so many choices, some will be suffering. That being said, it's like running. I loathe running in circles on a track. I run on the streets or from park to park for something different and exciting. Food is the same way. Why would you keep doing the same thing?" says Andrew Martin, chef of the newly-opened Somsak restaurant, which serves Isan fare.
"Everyone, including me, is looking for value for money and Bangkok has a few of the most affordable Michelin star restaurants in the world. It can't get better than this. However, people are looking at the whole package -- food, service, ambience, beverage offering, etc," says Jhol's general manger Anirban Nandi.
"The system of having a single fixed menu seems to be running out of steam. Many concepts feel repetitive. Whether you're dining in Bangkok, New York or Paris, you often get the same experience. I see this as a wake-up call for fine dining. It's time to rethink how we do things and adapt to what guests truly want: more flexibility, more choice and experiences," says chef-patron of Maison Dunand, Arnaud Dunand.
"People today are more health-conscious, too, and the traditional grand meal -- so cherished in France and across Europe -- no longer fits the rhythm or culture of Asia. There will always be a place for extraordinary dining experiences centred around a chef or a strong concept. But for now, the world is oversaturated with them," he adds.
"Thirteen years ago, when people asked who my competitors were, I struggled to name five. Today, I can name five within just 2km -- it's become completely excessive.
"In summary, the essence of fine dining is still alive. But we must evolve. It's time to rethink our approach and adapt to a changing world -- one where younger generations see things very differently than their parents," emphasises chef Dunand.
Bank concludes: "Bangkok's dining scene is reaching the point where the worst would need to close and only the best thrive. It's certainly a different time from when Michelin entered the Thai F&B industry and everyone was rushing to count the stars under their belts."
